{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"institution":[{"name":"Research Square"}],"indexed":{"date-parts":[[2026,5,6]],"date-time":"2026-05-06T04:10:23Z","timestamp":1778040623168,"version":"3.51.4"},"posted":{"date-parts":[[2026,4,28]]},"group-title":"In Review","reference-count":0,"publisher":"Springer Science and Business Media LLC","license":[{"start":{"date-parts":[[2026,4,28]],"date-time":"2026-04-28T00:00:00Z","timestamp":1777334400000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"accepted":{"date-parts":[[2026,4,19]]},"abstract":"<title>Abstract<\/title>\n                <p>\n                  On October 10, 2025, a geopolitical shock triggered one of the largest forced deleveraging events in cryptocurrency history, with total liquidations plausibly exceeding $19 billion across CeFi and DeFi venues within 24 hours. This paper exploits the event as a natural experiment to study how identical assets respond to identical shocks across fundamentally different market architectures. Using sub-second L2 order book data from Hyperliquid and millions of Binance tick-level trades, we document extreme cross-venue dislocations: BTC prices diverged by 7.24% ($7,387) within a single second, ETH spreads widened 602-fold, and bid depth collapsed by up to 99.8%.\nWe show that these divergences are not solely driven by liquidity stress, but by structural differences in market design. Using the Hansen\u2013Seo (2002) threshold cointegration framework, we reject linear price linkage and identify regime-dependent adjustment dynamics: under normal conditions, prices converge symmetrically, while during stress, adjustment becomes asymmetric and amplification emerges on centralized venues.\nA central contribution of the paper is to demonstrate that market observability is itself an architectural property. Due to exchange-level reporting constraints, publicly observed liquidation volumes on centralized exchanges constitute a structural lower bound on true activity, implying systematic undermeasurement during peak stress.\nThe findings highlight a new form of market fragmentation\u2014architectural fragmentation\u2014where arbitrage fails not due to information frictions but due to constraints embedded in trading infrastructure. These results have implications for market design, risk measurement, and regulatory reporting standards in increasingly hybrid CeFi\u2013DeFi financial systems.\n                  <bold>JEL Classification<\/bold>\n                  G01; G10; G14; G23; C32\n                <\/p>","DOI":"10.21203\/rs.3.rs-9459584\/v1","type":"posted-content","created":{"date-parts":[[2026,4,28]],"date-time":"2026-04-28T12:00:28Z","timestamp":1777377628000},"source":"Crossref","is-referenced-by-count":0,"title":["Same Shock, Same Assets, Different Microstructure: A Comparative Analysis of CeFi and DeFi Venue Performance During the October 10, 2025 Cryptocurrency Cascade"],"prefix":"10.21203","author":[{"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[{"name":"Independent Researcher"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"297","container-title":[],"original-title":[],"link":[{"URL":"https:\/\/www.researchsquare.com\/article\/rs-9459584\/v1","content-type":"text\/html","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/www.researchsquare.com\/article\/rs-9459584\/v1.html","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,5,6]],"date-time":"2026-05-06T03:11:04Z","timestamp":1778037064000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.researchsquare.com\/article\/rs-9459584\/v1"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026,4,28]]},"references-count":0,"URL":"https:\/\/doi.org\/10.21203\/rs.3.rs-9459584\/v1","relation":{},"subject":[],"published":{"date-parts":[[2026,4,28]]},"subtype":"preprint"}}